chevron-down Created with Sketch Beta.
September 30, 2022

North Carolina Executive Pleads Guilty to Falsification of Physician Orders for DME

On September 21, the DOJ announced that 28-year-old Kala Sloan pleaded guilty to forging physician orders to support millions of dollars of DME claims submitted to  Medicare between 2014 and 2021. Evidence presented in court showed that two DME companies—Carolina Rehab Products, Inc. (CRP) and Blue File DMC, LLC (Blue File)—billed Medicare $50 million for DME products, many of which lacked appropriate physician orders or were not actually shipped. Sloan, as Vice President of Operations for CRP and Blue File, then submitted forged prescriptions to a Medicare Advantage insurer conducting an audit to prevent the auditors from discovering the false billings. Sloan’s co-conspirator, the CEO and Controller of the companies, had already pleaded guilty to healthcare fraud in July. Sloan now faces up to five years in prison.

The material in all ABA publications is copyrighted and may be reprinted by permission only. Request reprint permission here.